Millennium & Copthorne Hotels posts $40M profit

Feb. 17
(BusinessDesk) - Millennium & Copthorne Hotels New Zealand,
the hotel operator and property developer, nearly doubled
profit in 2016, while CDL Investments, the residential
property developer it controls, lifted net profit 55 percent
in the year with housing in high demand.

The hotel
operator lifted profit to $40.4 million in calendar 2016
from $21.7 million in 2015, on a 26 percent lift in revenue
to $172 million. Strong sales at CDL contributed
significantly to the results, offsetting the closure of the
Copthorne Hotel in Auckland's Harbour City, the company
said. The Millennium board declared a 5 cents per share
dividend, with a May 12 record date, payable on May 19.

"2017 will be another exciting year for MCK as it will
mark the opening of M Social Auckland in the second half
after extensive refurbishment. The financial impact of
having Grand Millennium Auckland for a full year will also
be reflected in our results," the company said. "We expect
to benefit from the growing tourism interest in New Zealand
and the Lions Rugby Tour.

"We also expect strong sales
activity at CDL Investments to continue which will also
assist our profitability. Given all of these factors, we aim
to exceed our 2016 trading results in 2017."

Listed
subsidiary CDL lifted profit to $27 million from $17.5
million a year earlier, with property sales and other income
up 57 percent to $74.5 million a year earlier. The board
will pay a 3 cent dividend on May 19, with a May 5 record
date.

Managing director BK Chiu said that in 2017 CDL
would look to increase its sales activity and ensure that
the company continues to grow by acquiring additional land
for development in the future.

"Our recent land purchase
in Westgate/Whenuapai West Auckland looks promising under
the Auckland Unitary Plan," Chiu said. "We remain mindful
and disciplined with regard to the fundamentals of land
investment and its development in an environment of high
land price expectations.

"In the meantime, the land
development work established through 2015 and 2016, and
moving into 2017 will better enable us to deliver profitable
growth in 2017 from our existing subdivisions at Greville
Road (Auckland), Magellan Heights (Hamilton), and Prestons
Park (Christchurch)."

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